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Broker Misconduct Investigation: Douglas McKelvey (Morgan Stanley)

If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*

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Updated on: January 25, 2024

National investment loss lawyers KlaymanToskes is investigating broker Douglas McKelvey (CRD# 4502849) of Morgan Stanley, who has been permanently barred from acting as a broker by the Financial Industry Regulatory Authority (“FINRA”) and Securities and Exchange Commission (“SEC”) following allegations that he engaged in a fraudulent scheme through which he misappropriated more than $1.7 million from accounts of two elderly customers. 

The complaint further alleged that McKelvey sold securities from the customers’ accounts to generate a portion of the funds he misappropriated and took steps attempting to conceal his misconduct. McKelvey was registered with Morgan Stanley in Southlake, TX from 2009 to April 2022, and was permanently barred from acting as a broker by FINRA in August 2022. 

On June 6, 2023, McKelvey pled guilty to one count of money laundering in violation of Title 18 United States Code, Section 1957 before a United States Magistrate Judge in the United States District Court for the Eastern District of Texas. A settlement was reportedly reached on January 24, 2024, whereby McKelvey is permanently barred from working in the securities industry and from participating in penny stock offerings.

Investors that suffered losses with broker Douglas McKelvey at Morgan Stanley are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

Current Investigations About Broker Douglas McKelvey That You Should Know as an Investor:

KlaymanToskes is a leading national investment loss law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations. 

The articles linked below contain important information relating to KlaymanToskes’ investigation of broker Douglas McKelvey:

If you suffered losses with broker Douglas McKelvey, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.

The firm has helped recover over $600 million* for investors, and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.

*Exclusive of attorneys fees and costs.

Signs Investors Should Look Out For About Their Brokerage Accounts:

As an investor, there are a few signs that you should look out for if you believe you may have a claim against broker Douglas McKelvey. These signs could potentially indicate broker misconduct, negligence, or investment fraud. Investors are encourage to contact our firm immediately if you have experienced any of the following: 

  • You have substantial losses in your investment accounts
  • You received a call, email, or other communication from your broker’s supervisor or manager regarding your portfolio
  • Your broker misrepresented investment opportunities, or failed to disclose details about investments
  • You notice unauthorized transactions in your investment accounts
  • Your broker is not returning your calls or emails
  • You filed a complaint with your brokerage firm that has not been resolved
  • You see a mistake on your statement, or receive a fraudulent account statement

Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.

According to FINRA, brokerage firms such as Morgan Stanley are responsible for the supervision of all of the activities of their registered brokers and investment advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.

Engaging the services of an experienced securities attorney to evaluate the specific circumstances of your case is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.

If you suffered losses with broker Douglas McKelvey, or have concerns regarding your investment portfolio at Morgan Stanley, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.